USDOLLAR Daily Likely To Run Into Near-Term Exhaustion
Price has deviated from trend significantly on the daily chart since last Wednesday's Fed statement release. Trend, in this case, referring to the peaks and troughs on the daily as defined by the green trendline. However, the massive momentum acceleration over the last week has seen the gradient steepen to orange and then to red. This is unlikely to be sustainable in the near term as it will require enormous market momentum to keep the red gradient steady. Market participants may succeed temporarily but it is likely that exhaustion sets as profits are banked. This will then set up the platform for the next potential leg higher. We refer to a similar market back in march as denoted by the black trendline.
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